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by AndrewKemendo 3500 days ago
This is one way that markets clear prices when demand edges production. There's are many ways to do it, for example auctions. In this case the price sensitivity of the market is lower than the producer set, so the market is willing to pay more for the good than the product is selling it at.

When this pricing mismatch happens, there is the ability to close the pricing gap through repricing by a third party otherwise known as arbitrage.

This is one of the more important functional requirements for a market and the producer can take advantage of this based on how they price. Nintendo could have priced the system much higher and seen the same output but it may not have made as big if a splash, so really it's Nintendo driving this frenzy because they and all other major companies are good at this.

It's not a big it's a feature (really in this case).